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Question

I am employed by a 501(c)(6) entity.
1. Can a husband and wife both sit on our board of directors? Can our landlord sit on our board of directors? Is there a conflict of interest?
2. Annually we receive some funds from a County government in the form of TOT (Transit Occupancy Funds) - are we subject to the rules and regulations of the Brown Act.

Submitted: 93 days and 21 hours ago.
Category: Employment Law
Value: $38
Status: CLOSED
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Posted by PaulMJD 93 days and 20 hours ago.

Answer

The Brown Act governs open meetings regulations and would cover your organization only if: a. A legislative body delegates some of its functions to a private corporation or entity, 54952(c)(1)(A) Ch. II; or, b. If a legislative body provides some funding to a private corporation or entity and appoints one of its members to serve as a voting member of entity’s board of directors.

As far as family sitting on the board of directors, this is not prohibited by statutes unless the bylaws of the entity have a prohibition.


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93 days and 20 hours ago.

Reply

thanks, you information is very helpful. My other question was whether our landlord can sit on our board of directors - would it be considered a conflict of interest, as he gets paid for our office space. We have a difference of opinion with our board members and I would like to clear this up.

Accepted Answer

There is no prohibition in the law about the landlord sitting on the board, but if the bylaws are silent then the board can choose whether or not to have him as a member in accordance with the bylaws on selection of board members. It would be a conflict of interest and self-dealing for him to vote on any matters concerning his making profits or income from the decisions of the board as they relate to his property.

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Expert: PaulMJD
Pos. Feedback: 99.5 %
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Answered: 8/20/2009

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